Canadian Solar has signed a financing agreement pursuant to which Deutsche Bank AG, Tokyo Branch has agreed to provide a JPY12.0 billion ($97.2 million) senior non-recourse project finance credit facility to Canadian Solar for the construction of the company's Kumamoto Mashiki solar power plant in Japan.
The 48 MWp Kumamoto Mashiki solar power plant is forecasted to reach commercial operation in 2017 and will sell electricity to Kyushu Electric Power Co., Inc. under a 20 year feed-in-tariff contract at the rate of JPY36.0 ($0.30) per kWh.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, said:
"We are pleased to announce another project construction credit facility with Deutsche Bank that allows us to continue the development of our pipeline of quality solar projects in low risk geographies that we expect will create lasting value for our shareholders. We are also pleased that our efforts in Japan are gaining traction, our pipeline is maturing, and the construction of several valuable projects is ramping up, which positions us well to deliver solid results in the quarters ahead."